Wynn Could Fetch $1 Billion in Vegas Land Sale, Says Analyst
Posted on: May 12, 2025, 09:04h.
Last updated on: May 13, 2025, 09:23h.
- Company hasn’t said Las Vegas land is for sale
- Property was highlighted on recent earnings call
- Analyst says it could be a “prudent” move
Should Wynn Resorts (NASDAQ: WYNN) opt to sell its currently undeveloped 38 acres of Las Vegas Strip land, it could command a price tag as high as $1 billion.
That estimate is courtesy of Morningstar analyst Dan Wasiolek, who in a report out Monday, noted that Wynn could eventually sell its unused Sin City real estate and use the proceeds to focus on growth opportunities outside the US, including Macau where its Wynn Macau arm runs two integrated resorts.
Ultimately, we think Wynn could sell this undeveloped land for around $1 billion and allocate that capital toward debt repayments and international regions, which we would see as prudent,” wrote Wasiolek.
Prior to the coronavirus pandemic, Wynn signaled interest in developing the unused Las Vegas acreage, but those plans were halted amid the global health crisis. The gaming company hasn’t said it’s mulling a sale of that land and on its first-quarter conference call, CEO Craig Billings said “we have a land bank in Las Vegas.” If Wasiolek’s estimate is accurate and Wynn sells that property for $1 billion, that works out to be $26.31 million per acre.
Wynn Could Have Reasons to Sell Las Vegas Sand
In a March interview with CNBC’s Jim Cramer, Billings said Wynn could tap its substantial Las Vegas land bank to eventually add another gaming venue in its home market, though such plans don’t appear imminent. The CEO said that Wynn is “simultaneously” thinking about how to best deploy capital in Las Vegas, Thailand, and the UAE.
Wasiolek adds that it could be smart for Wynn to divest that real estate because Las Vegas gross gaming revenue (GGR) and visitation essentially track US GDP growth, implying growth is hard to come by in the US casino center. That means it’s difficult for operators to generate adequate return on invested capital (ROIC) there.
“Still, the supply/demand dynamic in Las Vegas leads to low ROICs, supporting our view that the region lacks a competitive moat,” said the Morningstar analyst.
He also points out that low barriers to entry in Las Vegas — rivals can somewhat easily enter the market — could make further development in the city unattractive to Wynn, particularly when accounting for the importance of Macau, the operator’s commitment to the United Arab Emirates (UAE), and potential opportunities in Thailand.
Fertitta Factor
Wasiolek didn’t mention Tilman Fertitta, Wynn’s largest shareholder in his report. Nor has Fertitta, now the US ambassador to Italy, publicly mentioned a desire to push Wynn to sell its unused Las Vegas property.
That could be a move that would be encouraged by the billionaire businessman if he turns into an activist investor with Wynn. For now, Fertitta appears content to be a passive shareholder. Should the gaming company opt to sell the land and realize approximately $1 billion in proceeds, it would serve the aim of firming its balance sheet and potentially supporting expanded shareholder rewards — two things that would be to the liking of all Wynn investors.
“We see Wynn’s shareholder distribution as appropriate, as we expect the company to focus on improving its balance sheet position and reinvesting in its business to remain competitive,” concludes Wasiolek. “The company’s dividend and share-repurchase activity has been measured, and we expect that to continue during the next 10 years, with dividends averaging 30% of earnings starting in 2026 and share repurchases averaging $200 million in 2025-26, followed by $500 million in 2027-29.”
Last Comments ( 9 )
I think the posts above are forgetting that the whole former Desert Inn golf course is owned by Wynn which is in the gaming overlay and is obviously underdeveloped as a golf course. Of course, they don't mention that here and just referred to the 38+/- acres across the street. However, selling just some of that much larger 128+/- acres on the existing site to the east of the Wynn / Encore that used to be the old Desert Inn Golf Course certainly could push the "land bank" well over the $1 billion.
What about the 128+/- acre golf course adjacent to the Wynn Resort and owned by Wynn?
the article is misleading, Wynn has access to 38 acres of land, 16 acres of that is leased at $4mm / year and the 22 acres are owned. Therefore Wynn would be selling 22 acres and selling the right to lease 16 acres. I am not sure how the $1 billion was determined. At $26.3mm / acres, that is $579mm for 22 acres, i don't expect the right to lease could be sold for very much, maybe a couple million, say $2 / acres, that is $32mm, for total proceeds of $611
The land that they would sell is not really their land. They're leasing it on a 99 year lease from Tishman. What are you guys talking about?
Does anyone know the status of the 26 acres of land on the north end of the strip that Archon Corporation owns? I heard that Archon wants 400 million.
Fertitta and his Team don’t know Luxury at all, something that Steve Wynn was a Master on creating something special and beautiful. But at the end money talks and he has the cash.
what is a drink pool
Tillman is bad news. Known as a massive cost cutter, he downgrades every restaurant he buys. Cutting staff, cutting drink pools etc. His attitude toward his customers shows his arrogance to their ability to notice this.
Todd! Thank you for sharing! Is 16 acres on the 38 acres of Wynn west owned by if I’m not mistaken the Elardi family for 99 years lease?